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BEO Bancorp Reports strong 3rd Quarter Earnings
 
CONTACT:
Jeff Bailey, President and CEO (541) 676-0201
Mark Lemmon, EVP & CFO, (541) 676-0201
 
Heppner, Oregon, (October 13, 2010).   BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced 3rd quarter 2010 consolidated net income of $518,000 or $0.56 per share, compared to a loss of $306,000, or ($0.34) per share for 3rd quarter 2009. Year-to-date earnings are $1,421,000, up 225.2% year over year. Total assets were $249.6 million, up 8.4% year over year. Net loans of $191.2 million were up 6.4% from the same period in 2009, while deposits were at $221.0 million, up 11.8% year over year. With a 10.2% tier 1 capital ratio, Bank of Eastern Oregon continues to be the strongest capitalized bank in eastern Oregon, as well as having one of the highest capital ratios in the state and well above its national peer group average.
 
“We are very pleased with our 3rd quarter and year-to-date results. Our provision for possible loan losses and bank-owned property write downs for 3rd quarter 2010 amounted to $325,000, compared to $2.1 million in 2009. Our overall loan portfolio quality continues to improve as we work through the lingering effects of the struggling economy,” said president and CEO, Jeff Bailey.
 
Chief Financial Officer Mark Lemmon said, “Year-to-date Return on Average Assets is 0.77% and Return on Average Equity is 12.51%, compared to 0.25% and 4.12%, respectively, year over year.” Lemmon went on to say, “Our low cost source of funds continues to fuel profits.”
 
Chief Operations Officer Gary Propheter said, “Deposit growth has been strong across all branches in our system. The continued trend of double-digit growth in core deposits tells us our customers are happy with Bank of Eastern Oregon’s style of banking, our flexible products, and the excellent, professional service provided by our banking teams.”
 
“For the second consecutive quarter, past due loans at quarter end were minimal and we continue to see progress in moving some of the non-performing assets off our books,” said EVP and Chief Credit Officer, E. George Koffler. “The national media would have one believe that banks are still reluctant to loan money, but this is really not the case. We have money to loan to qualified borrowers and are excited to continue serving our customers just as we have for the past 65 years,” added Koffler.
 
“The continued support of our shareholders and customers is truly appreciated. Our employees have performed exceptionally well through the recent economic downturn and those efforts are paying off with improved profits and growth of the bank. Our strong capital ratio, excellent liquidity, and improving risk profile should serve us well as the economy continues to improve,” concluded Bailey.
 
For further information on the company or to access internet banking, please visit our website at .
 
About BEO Bancorp
 
BEO Bancorp is the holding company for Bank of Eastern Oregon, which operates 12 branches and two loan production offices in nine eastern Oregon counties. Branches are located in Arlington, Ione, Heppner, Condon, Irrigon, Boardman, Burns, John Day, Prairie City, Fossil, Moro and Enterprise; loan production offices are located in Hermiston and Ontario. Bank of Eastern Oregon also operates a mortgage division and offers brokerage services through BEO Financial Services. The bank’s website is www.beobank.com.
Forward-Looking Statements
 
The statements contained in this release that are not historical facts are forward-looking statements based upon management’s current expectations and beliefs concerning future
developments and their potential effect on BEO Bancorp. There can be no assurances that future developments affecting BEO Bancorp will be the same as those anticipated by management.
 
Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These risks and uncertainties include, but are not limited to:
 
(1)   Competitive pressures in the banking and financial industries.
(2)   Changes in interest rate environment.
(3)   General economic conditions, nationally, regionally, and in operating markets.
(4)   Changes in regulatory environment.
(5)   Changes in business conditions and inflation.
(6)   Changes in securities markets.
(7)   Future credit loss experience.